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Lecture notes, cheat sheets
Banking audit. Methods and techniques of auditing (most important)
Directory / Lecture notes, cheat sheets Table of contents (expand) 53. Methods and techniques of auditing Audit means an independent examination and analysis of the financial statements of enterprises, banks, organizations, institutions and other subjects of market relations. The purpose of the audit is to establish the reality, completeness and reliability of the reporting, its compliance with the current legislation, as well as the requirements for accounting and financial reporting. Persons who check the state of the financial and economic activities of companies, firms, institutions and other commercial structures are called auditors. The auditor can work independently or as a representative of an audit firm. Audits of banks are most often carried out by special audit firms. During the audit, in addition to their main task - drawing up an audit report, auditors also carry out consulting activities (on business, accounting, internal control, taxation and other issues), which brings them a significant part of their income. It is not uncommon for a bank or a credit institution to cooperate with several auditors or audit firms at once. The firm, which is the most famous and authoritative, "certifies" all the official statements of the bank and draws up an audit report. Other firms provide consulting assistance and are invited to solve specific specialized tasks (most often these are tax optimization, cost and profitability analysis of the bank, verification of individual internal divisions of the bank). In Russia, the process of forming a network of audit firms began in 1987. In 1992, the Congress of Auditors (which was held jointly with the Congress of Business Circles) was attended by representatives of 180 Russian audit firms. Of course, the market for audit services is only in its infancy. However, there were circumstances that significantly hindered its development: the audit was not fixed by law; audit examinations were obligatory only for joint ventures and commercial banks. Because of this, the demand for audit services was negligible. In 1993, the first step was taken towards the creation of a legislative framework and the organization of auditing activities, the Decree of the President of the Russian Federation "On Auditing Activities in the Russian Federation" (dated December 22, 1993 No. 2263) approved the Provisional Rules for Auditing Activities in the Russian Federation, which determined the legal basis for audit as an independent non-departmental financial control. Currently, most of the economic entities are required to undergo an annual audit (in particular, to receive an audit report of the established form, and to publish annually statements certified by an audit firm, all commercial banks are required to). Due to the specifics of the activities of banks and other credit institutions, the Order of the Central Bank of Russia dated March 18, 1996 N 02-71 approved the "Temporary Regulations on Auditing Activities in the Banking System of the Russian Federation", which explains the specifics of conducting and sets standards for conducting a banking audit . Auditing can be mandatory and proactive. At the same time, a mandatory audit is carried out in cases expressly established by acts of the legislation of the Russian Federation, and an initiative one - by decision of an economic entity. The most important condition for the development of a civilized audit services market is the appropriate level of auditor training. The auditor must have an impeccable reputation and high qualifications. In accordance with the above Decree, all individuals engaged in auditing activities are required to undergo certification for the right to carry out these activities. Due to the high responsibility that the auditor assumes when drawing up the audit report, high requirements are imposed on the certification of auditors. Certification is carried out on the basis of educational and methodological centers for training and retraining of auditors, determined in agreement with the Audit Commission under the President of the Russian Federation, on the proposal of the Central Bank of the Russian Federation. Information about these educational and methodological centers is published in the central press organs and local press organs of those regions in whose territories they operate. All individuals who wish to engage in audit activities in the field of banking audit independently or as part of an audit firm undergo attestation. Persons who have an economic or legal (higher or secondary specialized) education, as well as work experience on a permanent basis for at least three of the last five years in the banking system as an auditor, specialist of an audit firm, accountant, economist, auditor, head of an enterprise , researcher or teacher in economics. The activities of banks are specific. They work primarily with borrowed funds, including funds from the public. This circumstance calls for special control over the activities of banks by the state represented by the Bank of Russia over the legality of their operations and their financial position. The legal norms governing the activities of the Bank of Russia (the Law on the Central Bank of Russia) and commercial banks (the Law on Banks and Banking) determined the supervisory authorities, including mandatory independent control of banks - audit. Audit checks are characterized by complexity, independence, as well as the development of positive recommendations in the interests of the founders of the bank. Bank audit, like audit in general, is divided into external and internal. External audit is carried out, as already noted, by independent audit firms; its main purpose is. confirmation of the reliability of financial statements. Internal audit can be considered as a system of internal control and a system of bank security measures in order to protect the interests of depositors, maintain and achieve specific results in the bank's activities. It includes a set of bank plans, methods and procedures used within it to protect assets, increase profits, and ensure that the instructions of the bank's management are strictly followed. Internal audit is organizationally presented as a structural subdivision of the bank and reports to the head of the bank. The tasks of internal audit can be varied: checking the correctness of accounting; verification of the correctness of maintaining accounts for the expenses and income of the bank (the legitimacy of attributing expenses to certain items, the legality of the generated profit, the timeliness of writing off expenses on accounts, etc.); verification of the legality of certain operations, etc. For the organization and conduct of internal audit, it is recommended to develop methodological guidelines or instructions that should determine the process of control in this area of work. Internal audit is carried out in accordance with the approved annual plans. The audit manager is fully responsible for the entire organization and conduct of the audit. Internal audit can be seen as an integral part of the overall management control system. Historically, the nature of internal controls has varied. Initially, the role of the audit came from the tasks of financial management and ensuring the safety of assets and carried total control at a detailed level. With the increasing complexity of control, the focus has shifted to confirming the completion of cycles of certain intra-system control procedures. Subsequently, the attention of auditors began to focus not only on how the control and information processing systems function, but also how effective they are in achieving the goals for which they are intended, and what improvements can be made to them. Recently, in many organizations, the role of internal audit has been expanded to include an assessment of the quality of information issued by the management information system and forming the basis for decision-making, as well as an assessment of the usefulness of the information analysis methodology used. Internal auditors would prefer this trend to increase and they would be perceived as experts in the field of independent managerial control activities. Based on foreign experience, internal auditors conduct an independent expert assessment of the management functions of a firm, company, etc., including their own activities. They provide their parent office with analysis, evaluations, recommendations, advice and information about the activities of the organization they audit. Internal auditors work in both the public and private sectors. The objective of internal audit is to help relevant employees perform their duties as efficiently and effectively as possible. The internal auditor checks the accounting information and its reliability. Internal auditors report to senior management and usually have direct links to the audit committee, board of directors, and other management units. At present, bank internal audit, due to the lack of a sufficient methodological and regulatory framework, can use the previously existing instructions for auditing banks to control a number of traditional bank operations. External banking audit is built in accordance with the Regulations on Auditing Activities in the Banking System of Russia. The cost of audit services is determined by an agreement concluded by audit firms with banks. The contract can be concluded both for a one-time inspection and for audit services for a certain period of time. When performing its work in accordance with the Regulations on Auditing Activities in the Banking System of Russia, an audit company (organization) has the right to: receive from the heads of banks and other credit institutions all documents related to the activities of banks; attend general meetings of founders (shareholders) of banks, board meetings when discussing any issue that falls within the competence of auditors; require from any employee of the audited bank such information and explanations as are necessary for the auditors to perform their work; check at any time all primary accounting documents of the controlled bank. The audit company (organization) is obliged to provide an objective audit report: on the reliability of the bank's balance sheet data as of the date of the report; on the compliance of accounting with the requirements of regulatory documents; on the bank's compliance with the banking legislation of the Russian Federation; on the compliance of the results of the financial and economic activities of the bank with its reporting; on the correctness of the declaration of taxable income; about abuse. If they are identified, provide information to law enforcement and financial authorities and the Central Bank of the Russian Federation. An auditing firm may not confirm the bank's financial statements if: during the audit, serious shortcomings are found; auditors were pressured; there is no way to establish the reliability of reporting. All the nuances are indicated in the auditor's report. In such cases, the founders and managers of the bank are obliged, within a month from the date of drawing up the audit report, to eliminate the identified shortcomings and circumstances that hinder the confirmation of the statements, and submit the corrected report again for consideration by the audit firm. If minor deficiencies are identified that have not caused damage to the interests of the state, depositors and founders of a commercial bank, the audit firm confirms the statements, indicating in the audit report the nature of the identified deficiencies. The heads of audit firms and auditors are responsible for confirming the accounts of banks in the manner prescribed for officials who have the right to sign accounting documents. The Central Bank of the Russian Federation and its institutions, as well as other state regulatory bodies within their competence determined by law, have the right to check the activities of banking audit companies (organizations) and auditors. In the event of repeated poor-quality auditing, concealment of facts of violations by commercial banks of the legislation of the Russian Federation, the Central Bank has the right to revoke the license to conduct banking audits, after which the annual reports of commercial banks with audit reports issued by audit firms and auditors deprived of licenses are not accepted by institutions of the Central Bank of the Russian Federation . Upon detection of an unqualified audit that resulted in losses for the state or for another economic entity, by a court decision or at the suit of the Arbitration Court brought by the authority that issued the license, the auditor or audit firm may be charged: incurred losses; the cost of re-checking; a fine in the amount established by the relevant legislation. External audit is interconnected with internal audit. First of all, the organization and effectiveness of internal control are evaluated. At the same time, the following are established: the degree of objectivity of internal audit; independence; competence; scope of functions performed. Auditors study all the activities of the audited bank. For an objective assessment, it is necessary first of all to consider the state of active and passive operations, which should: be genuine; be properly assessed; be correctly reflected in the financial statements; comply with legal requirements for these operations. 2. 2. Audit risks The activities of the auditor are planned in detail by the head of the audit firm. Distinguish between strategic planning and detailed planning. Strategic planning involves determining: the scope of work based on knowledge and experience; identification of risks; waiting for customers (firms, banks). The combined audit knowledge and experience makes it possible to assess the auditor's workload and the auditor's degree of risk in auditing a given bank. Usually, the following types of risks are distinguished in the methodological literature: 1) the risk of the professional ability of the auditor. It is determined by a strict approach to the choice of the audited company, taking into account its reputation (decency, honesty of the company, the degree of risk of operations performed by this bank). Undertaking to check a particular company, the audit company first of all pays attention to its reputation. Thus, the audit of this firm should not be detrimental to the audit firm and its clients; 2) the risk of client expectations - the risk of not being satisfied with the conclusions of your client. In cases where the client is not satisfied with the audit, he may subsequently refuse the services of this audit company; 3) audit risk - the audit report may be incorrect. In today's new business environment, the most "dangerous" for the auditor are the risks of the first group, although audit firms currently pay the least attention to them. The loss of reputation of an audit firm will inevitably lead to the loss of most of the clients, both new and old, in addition, this may lead to the termination of the license for the right to practice auditing. Therefore, for a modern audit firm, the "struggle for the client" has its own specifics. According to the author, the signing of a contract for audit services and the emergence of a new client with an audit firm should be preceded by an "express audit" (preliminary acquaintance with a potential client). Audit risks are divided into: inherent risks; control risks; the risk of errors. Inherent risks are risks inherent in the very nature of the activities of a bank or firm. The work of the bank is characterized by a large number of operations performed during the reporting period. The greater the number of operations, the greater the possibility of errors. Therefore, it is important to identify a significant error that leads to a change (distortion) in financial results. An error of 100 million rubles. - significant or not? It is significant, for example, in relation to the bank's income equal to 1 billion rubles. and not significant in relation to 1 trillion. rub. For example, the bank's income amounted to 50 million rubles, therefore, the error is less than half a percent of the total income and can be considered insignificant. However, if the bank's income amounted to 000 million rubles, then such an error would radically change the financial statements, and the bank could move from a profitable one to a loss-making one. Control risks. The accounting of the client (bank) contains certain control systems. With a good control system, control risks are lower, with a bad one, they are higher. For example, the balance sheet can be considered as one of the control systems for determining the correct posting of bank transactions to accounting accounts. If the turnovers are correctly calculated, then the balances at the end of the day converge. Consequently, all transactions are reflected both in debit and credit accounts. Error detection risk means that not all errors can be detected by certain audit techniques. If the error is not detected, then it may affect the further activities of the bank. Thus, during strategic planning, the current control system of the client is studied and the risk of errors is determined. If at this stage it is determined that the audit risk is high, the audit firm concludes that this client has a large amount of work to do when confirming the report. So, the auditor has determined the scope of work and now proceeds to the choice of methods or techniques of audits. The choice of verification method is determined by the reputation of the bank and possible auditor satisfaction (ie, confidence in the quality of the verification). When choosing a verification method, there are: control methods; analytical techniques; detailed study of operations. The control methods include: the quality of control by the bank's management; availability of computer control systems; physical control, i.e. verification of assets in kind (bank notes, securities, etc.). Analytical techniques include: sending letters to customers to confirm the loan amount or account balance; studying, for example, the rate of growth or decline in operations, income of the current and previous year. Control and analytical techniques are quick and less labor intensive, but provide less auditor satisfaction. Detailed study includes: verification of accounting documents; actual verification of transactions; checking accounting; comparison of accounting records with documents (as well as accounting records, documents and actual data on mutually related operations); cross checks. In the process of checking accounting documents, the legality and correctness of the operations are established, the authenticity of documents, the correctness of the calculations contained in them, and the validity of accounting entries are verified. At the same time, a complete verification of documents for the most complex and responsible operations, which are subject to abuse, is not excluded. For example, cash, currency, deposit, interest, commission, guarantee transactions. It is advisable to carry out a complete check of documents for operations that are not related to the execution of customer orders and therefore are not controlled by them. Such documents include documents on intra-bank operations on the income and expenses of the bank, the formation of its authorized fund. In all other cases, a selective method of checking documents is appropriate. When using it, you can avoid reducing the reliability and distorting the real state of affairs if you make the right selection of documents. The selection of documents is done over a relatively long period of time, during which possible violations could be repeated. It is not recommended to select documents for separate days of any period for verification. Documents are checked both in terms of the legality of the transactions reflected in them, and in terms of the correctness of their execution, that is, the use of established forms of forms, the correct indication of the account numbers of payers and recipients of money, dates of transactions. Expenditure cash documents are checked especially carefully. As a random check, it is advisable to compare individual copies of sets of documents that are in the bank and with customers. At the same time, it is possible to identify cases of violations and abuses, use fictitious copies of instructions and their copies. To check documents, logical analysis is used, a study aimed at identifying internal contradictions in the documents themselves, the nature of payments based on the real credit resources of the bank. For this, in particular, the following methods are used: the relationship of documents, cross checks. The actual verification is carried out in order to establish the reality, i.e. the validity of the transactions. It is carried out according to documents, accounting of the bank, its shareholders and clients, in financial authorities. The receipt and issuance of money and material values is established by means of a survey or on the basis of certificates of legal entities and individuals. The actual performance of paid work, purchased fixed assets and equipment is checked by inspecting the object in kind, establishing the consumption of materials and money for wages. Paid services are also checked in kind for the relevant objects. According to the records of clients and correspondent banks, it is checked whether there are fictitious ones among the existing accounts. By reconciling accounting records with documents, their validity in accounting is established. For example, the sale of documentary securities (shares, bonds) should be accounted for off-balance sheet accounts as an expense of blank securities. It is also reflected in balance sheet accounts, as cash receipts at the cash desk, or as an increase in funds on the bank's correspondent account in case of non-cash transfers. The incoming cash order must correspond to the amount of the value of the securities sold for cash. Detailed study of operations is the most time-consuming, but gives the greatest auditor satisfaction. The choice of one method or another depends on the degree of risk determined by the level of work of the given bank. An express or pre-audit should always be present when an audit firm has a new client. As practice shows, those audit firms that consider the acquisition and maintenance of long-term, regular customers as a strategic direction develop most successfully and dynamically. In the short term, it is more important for an audit firm to retain old customers than to attract new ones. Here, work according to the principle - "an old friend is better than two new ones" is most appropriate. Therefore, when attracting a new client, before establishing official relations with him, and even better before starting negotiations, it is necessary to obtain as much information about him as possible and analyze how the appearance of a new client will affect the already established clientele of the audit firm. This is especially important when conducting a bank audit. At present, in the conditions of the formation of the banking system and the rapid growth of competition in the banking environment, it is quite rare that two large banks or banks from different "friendly" groups would be serviced by one audit company. Therefore, it is important to understand whether the emergence of a new bank will lead to the loss of a large bank or a group of banks. When conducting a preliminary audit, the auditor must obtain information about the client on the following issues: the founders of the bank; the circle of the bank's partners with whom it works most actively; information about the heads of the bank; the possibility of issuing a positive audit report, that is, the absence of gross violations and abuses in the work of the bank. A feature of the express audit is the limited time and the insufficient number of documents that you have to work with. Therefore, the most trained and experienced auditors are involved in the express audit, who are able to present the state of affairs in the bank in a short time and identify all significant violations in the bank. It is far from always possible to go directly to the audit object before the start of the audit, and even more so to receive the necessary primary documents from the client. Therefore, the ability of the auditor to analyze the official bank statements, which can be obtained from the press, brochures and other sources, is of great importance. The most informative and meaningful are the balance sheets of a commercial bank. The following section provides an approximate methodology that can be used in balance sheet analysis in order to track the main trends in the development of a commercial bank. 3. 2. Bank balance The balance sheet of a commercial bank is a balance sheet that reflects the state of the bank's own and borrowed funds and their placement in credit and other active operations. According to the balance sheet, control is exercised over the formation and placement of monetary resources, the state of credit, settlement, cash and other banking operations, including operations with securities. The balance sheets of commercial banks are the main part of their reporting. Their analysis allows you to control the liquidity of the bank, improve the management of banking activities. The management of banks, using the reports of other banks, gets acquainted with the state of affairs in them when establishing correspondent relations, granting loans, etc. Bank balance sheets are built according to a unified form. The degree of detail of operations is limited by trade secrets, which are typical for the practice of commercial banks operating in a competitive environment. At the same time, the reliability and visibility of the balance sheet must be ensured so as not to undermine the confidence of customers. Bank balance sheets are commercial media, they meet its basic requirements: efficiency, specificity, solidity. The efficiency of the bank balance sheet is manifested in its daily compilation. The bank balance sheet is a source of specific information about the availability of funds and solvency, credit resources and their placement, the reliability and stability of the bank itself. Bank accounting meets the requirements of reliability (solidity). When constructing bank balance sheets, the principles of grouping transactions according to economically homogeneous features and with a decreasing, as a rule, liquidity of items for an asset and a decreasing degree of demand for funds for liabilities are used. Accounts of the nomenclature of the balance sheet of banks are divided into balance and off-balance. Balance accounts are active, passive and active-passive (hereinafter referred to as the old chart of accounts). Funds on passive accounts are the bank's resources for lending and other banking operations. The debt on active accounts shows the use (direction) of these resources. The passive accounts reflect the bank's funds, funds of enterprises and organizations, individuals, state budget revenues, deposits, funds in settlements, bank profits, accounts payable, other liabilities and attracted funds, including refinancing amounts received from other banks. Active accounts include cash in the bank's cash departments, short-term and long-term loans, state budget expenditures, capital investment costs, receivables, other assets and diverted funds. Off-balance accounts show the movement of valuables and documents received by banks for storage, collection or commission. This also includes stamps of state duty payment, forms of strict accountability, forms of shares, shares on behalf, documents on a letter of credit, other documents and valuables. All balance sheet accounts are divided into first-order accounts - enlarged, synthetic accounts, and second-order accounts - detailed, analytical accounts. All balance sheet accounts of commercial banks are grouped according to the principle of economically homogeneous content and, to some extent, liquidity. The nomenclature of off-balance sheet accounts is four-digit, off-balance sheet accounts are grouped in the x section. In the process of analyzing the bank's balance sheet, especially its liquidity, it is important to determine the size of own funds. The bank's own funds are defined as the sum of all its funds (statutory, reserve, special, etc.), commercial risk insurance reserves, own funds intended to finance capital investments, bank profits, and own funds in settlements. Thus, the amount of the bank's own funds (gross) is determined The concept of own funds (gross) is wider than the concept of own funds (net) due to the inclusion of diverted (capitalized) funds (for example, reserves in the Central Bank). Immobilization processes reduce the profitability and liquidity of banking operations. Therefore, the causes that cause such immobilization should be identified and eliminated. The correct determination of the indicator of the bank's own resources plays a paramount role in the analysis of the liquidity of the bank's balance sheet, since on the basis of this indicator liquidity standards are set, used by the Central Bank in order to control and regulate the activities of commercial banks. At the same time, it should be borne in mind that the bank's own funds, considered as credit resources, should include the debit balance on the correspondent account, the difference between the bank's income and expenses (for intra-quarter dates), economic incentive funds and, at the same time, take into account their decrease in the amount of bank transactions for the purchase of securities, as well as the excess of the amounts transferred by the bank to supplier enterprises for factoring operations over the amounts of funds reimbursed by payers. Distinctive features of the balance sheets of commercial banks are the relatively small share of own funds and the predominance of short-term resources in liabilities. In conditions when the legislation provides for a certain ratio between own and borrowed resources, commercial banks, as a rule, keep their own funds at the minimum allowable level. At the same time, short-term resources are the main source of coverage for active operations. The share of capital investments in the assets of commercial banks is small. When grouping balance sheet items, taking into account the degree of liquidity, the following assets are distinguished: 1) Cash assets (cash, reserves in the Central Bank, funds in a correspondent account with the RCC), funds in other commercial banks, securities. The items in this section reflect "primary reserves" in terms of liquidity. 2) Investments in securities, commercial bills, government securities of government organizations, local authorities, etc. Some of these assets can be quickly converted into cash with little risk of loss and therefore constitute "secondary reserves". These assets include short-term commercial bills issued by first-class creditworthy borrowers, which are sold on the money market (refinancing), GKO, OGSS, OGVVZ. This section includes items associated with minimal risk and approaching liquid assets - securities issued for a period of one to five years. 3) Loans issued to enterprises, organizations, as well as individual borrowers (tenants, peasant farms, etc.), other commercial banks. These balance sheet assets are classified as low-liquid investments, since banks bear the risks of their timely repayment and transformation into first-class liquid funds. 4) Capital investments - investment in movable and immovable property, creation of branches, joint ventures, etc. The grouping of balance sheet items in terms of the economic essence of banking operations can be done as follows: 1) Clientele transactions, including all types of lending and fundraising transactions. 2) Interbank transactions. In assets and liabilities, they cover all transactions with banks, including medium-term and long-term ones. Liquid items prevail among them in assets. 3) Other banking operations, which mainly include investments in securities, including short-term liquid securities. This group includes active operations of commercial banks. In liabilities, raising funds in the form of bonded loans. BALANCES of commercial banks are used to analyze and manage the activities of banking institutions, determine their liquidity indicators, manage banking risks, factor analysis of banking profits. In the new conditions of banking, the balance sheet of a commercial bank is not only a means of accounting, but also a means of commercial information, bank management, as well as a means of serious advertising for potential customers seeking to deeply and professionally understand the activities of the bank. The increased interest of the banks themselves in the analysis of their economic and financial activities is associated with a change in their status, the transformation from management bodies into specific commercial institutions. The balance is considered liquid if its condition allows, due to the rapid sale of funds on the asset, to cover urgent liabilities on the liability. The ability to quickly convert the bank's assets into cash to fulfill its obligations is predetermined by a number of factors, among which the decisive factor is the compliance of the timing of the placement of funds with the timing of attracting resources. In other words, what is the liability for the term, so should the asset be; then a balance is ensured in the balance between the amount and term of the release of funds on the asset in cash and the amount and term of the forthcoming payment on the bank's obligations. The liquidity of a bank's balance sheet is affected by the structure of its assets: the greater the share of first-class liquid funds in total assets, the higher the bank's liquidity. In international practice, the most liquid part of the assets is considered to be cash on hand, which means not only money on hand, but also money on the current account of a given credit institution with the Central Bank. Liquid items in developed countries are first-class short-term commercial bills that the bank can rediscount in the Central Bank, government-guaranteed securities. Bank investments in long-term securities are less liquid, since their realization in a short period of time is not always possible. Long-term loans and investments in real estate are considered as hard-to-liquid assets. In addition, the bank's liquidity depends on the degree of risk of individual active operations: the greater the share of high-risk assets in the bank's balance sheet, the lower its liquidity. So, in the current practice, it is customary to attribute cash to reliable assets, and long-term investments of banks to high-risk ones. The degree of creditworthiness of the bank's borrowers has a significant impact on the timely repayment of loans and thus on the liquidity of the bank's balance sheet: the greater the share of high-risk loans in the bank's loan portfolio, the lower its liquidity. Liquidity also depends on the structure of balance sheet liabilities. And, ceteris paribus, an increase in the share of demand deposits and a decrease in the share of term deposits reduces bank liquidity. The reliability of deposits and loans received by the bank from other credit institutions also affects the liquidity level of the balance sheet. It should be emphasized that in order to maintain its stability, a bank must have a certain liquid reserve to meet unforeseen obligations, the emergence of which may be caused by a change in the state of the money market, the financial situation of a client or a partner bank. The liquidity of the bank's balance sheet is assessed by calculating special indicators that reflect the ratio of assets and liabilities, the structure of assets. In international banking practice, liquidity ratios are most often used for these purposes. The latter represent the ratio of various assets of the balance sheet of a credit institution with certain liabilities or, conversely, liabilities with assets. Usually, short-term and medium-term liquidity ratios are used to assess liquidity; they are calculated as the ratio of short-term liquid assets or medium-term assets to corresponding maturity liabilities. In a number of countries, banks are required to maintain liquidity ratios not below a certain level, called the liquidity ratio. Liquidity norms in some countries are established by banking and currency control authorities, in others - by banking legislation; their value is determined taking into account the accumulated experience and specific local conditions. The assessment of the bank's liquidity level is achieved by comparing the value of the liquidity ratios of a particular bank with the established norms. Maintaining liquidity at the required level is carried out through the implementation of a certain policy of the bank in the field of passive and active operations, developed taking into account the specific conditions of the money market, specifics, clientele, features of operations performed, opportunities to enter new markets and develop banking services. The liquidity of a bank underlies its solvency. Solvency is interpreted as the ability of the bank to meet its obligations in due time and in full. However, it depends not only on the liquidity of the balance sheet, but also on a number of other factors. These include: the political and economic situation in the country or region, the state of the money market, the possibility of refinancing at the Central Bank, the development of the securities market, the existence and perfection of collateral and banking legislation, the security of the bank's own capital, the reliability of customers and partner banks, the level management in the bank, specialization and variety of banking services of this credit institution and other factors. At the same time, these factors directly or indirectly affect the liquidity of the bank's balance sheet. The central banks of countries with a developed market economy regulate the solvency of commercial banks by setting limits on bank liabilities, limiting the debt of one borrower, introducing special control over the issuance of large loans, creating a system for refinancing commercial banks and obligatory reservation of part of the funds raised, pursuing an interest rate policy and carrying out transactions with securities. securities on the open market. In the process of analyzing the liquidity of the commercial balance, the task is to determine the actual liquidity, compliance with its standards, identify its factors that caused deviations in the actual value of liquidity ratios from those established by the Central Bank. The main qualitative factors that determine liquidity are the types of attracted deposits, their sources and stability. Therefore, the analysis of the deposit base is the starting point in the analysis of the bank's liquidity and maintaining its reliability. Using the methods of comparative analysis of passive operations, it is possible to identify changes in the volume of these operations, to determine their impact on the bank's liquidity. The main place in the bank's resources is occupied by attracted deposits, settlement and current accounts. The share of borrowed funds accounts for up to 75% of funds in most commercial banks (according to statistics). Funds attracted by the terms of demand, i.e., the degree of liquidity, can be divided for analysis into the following subgroups:
The share of individual subgroups in the total amount of attracted funds characterizes the place and role in the credit potential of each type of resource and the corresponding economic counterparties. The experience of foreign and domestic commercial banks shows that the main factors determining liquidity are the type of attracted deposits (term or demand), the source of their origin and stability. As you know, the Central Bank of the Russian Federation, in order to maintain its liquidity by commercial banks, that is, the ability to timely, fully and uninterruptedly make payments on their obligations, establishes mandatory ratios between the bank's own funds and attracted resources. In the process of analyzing the balance sheet for liquidity, deviations in the direction of both a decrease in the minimum allowable values, and their significant excess can be identified. In the first case, commercial banks are instructed to bring liquidity indicators in line with the normative values within a month (in case of violation of the CB of each of the directive liquidity standards established by the Central Bank, the amount of transfers to the required reserves fund increases). This is possible by reducing, first of all, interbank loans, accounts payable and other types of attracted resources, as well as by increasing the bank's own funds. However, it should be borne in mind that raising additional capital in the form of issuing new shares will cause a reduction in dividends and disapproval of shareholders. If the actual value of the main regulatory liquidity ratio turns out to be much higher than the established minimum allowable one, then the activities of such a bank will be negatively assessed by shareholders (shareholders), in terms of unused opportunities for profit. In this regard, it should be noted that the analysis of the liquidity of the balance sheet should be carried out simultaneously with the analysis of the profitability of the bank. The experience of commercial banks shows that banks get more profit when they operate on the verge of the minimum acceptable liquidity ratios, that is, they fully use the rights granted to them to raise funds as credit resources. The state of liquidity of assets is analyzed through deviations of actual values from the normatively established ratios of various groups of active balance sheet items and capital of the bank, deposit accounts, allocation and comparison of liquid assets with the total amount of the balance sheet asset. If the ratio of issued loans and the amount of settlement current accounts, deposits and deposits systematically exceeds the normative one, then the bank should change its strategy and tactics in the direction of intensifying the deposit policy, developing banking services related to attracting deposits in order to expand the resource potential. 3. 3. Express analysis of the bank balance Express analysis of the bank balance at present in modern conditions, to one degree or another, should be owned by almost all employees related to the banking sector, from employees of the economic services of banks to specialists of commercial firms responsible for choosing a bank for settlement services and placement of free enterprises' funds. There are a fairly large number of techniques for analyzing the balance sheet of a bank. In this paper, I would like to generalize the approaches to assessing the liquidity of the bank's balance sheets during their preliminary assessment in the operational mode. We call this accelerated procedure for analyzing the balance sheet of a bank express analysis. The existing various approaches to the analysis of the activities of banks are determined in many respects by its various types and methods. For example, there are several levels of analysis of the activities of commercial banks: preliminary; current; complex. Among themselves, they differ mainly in the volume involved in the analysis of reporting accounting and statistical data. The analysis carried out by the audit services when solving the issues of attracting a client is external and, for existing reasons, limited in the sources of information, the main of which is financial statements. Balance analysis allows you to determine the general state of liquidity and profitability, identify the structure of own and borrowed funds on a certain date or for a certain period, as well as establish the specialization and significance of the activities of a bank or a group of banks in the banking system. The analysis of the balance sheet liability reveals the main sources of the bank's funds: the bank's own funds; deposits and their nature; current accounts or term deposits. The analysis of the balance sheet asset is more complex, since its articles do not always make it possible to judge the operations of banks. Various methods of analysis are given in the literature: factorial, comparative, balance, optimization, etc. Conducting a preliminary analysis, one can limit oneself to the simplest methods: grouping, comparison, and coefficients. The grouping method allows, by systematizing the balance data, to understand the essence of the analyzed phenomena and processes. Criteria, the degree of detail, as well as other features of the grouping of assets and liabilities of the balance sheet are determined by the goals of the analytical work being carried out. The following groupings are possible. Liabilities of the balance at the cost of attracted, own and borrowed resources; the degree of demand for liabilities; deadlines; economic counterparties; types of operations; usage possibilities. Balance asset by level of profitability; degree of liquidity; terms of investment; types of operations and degree of risk. Author: Shevchuk D.A. << Back: Professional and ethical requirements for auditors >> Forward: Types of audit reports
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